All companies and other legal entities require a global identification code, referred to as a Legal Entity Identifier (LEI), to be able to carry out securities transactions. To avoid problems with your securities trading, you need to register your company’s LEI. Companies do not require an LEI to trade mutual fund units. However, trading in exchange-traded funds (ETF) does require an LEI.
You can apply for an LEI directly from an issuer or via an intermediary. The Legal Entity Identifier Regulatory Oversight Committee (LEI ROC) has produced a list of approved issuers.
Issuers approved by LEI ROC (Opens in a new window)Opens in a new window
Here are some frequently used intermediaries:
Depending on the issuer, an LEI costs between SEK 750 and SEK 1 500 for the first year. Subsequent annual fees are between SEK 500 and SEK 1 000. To be able to trade in securities, it is important that you update your LEI every year and pay the annual fee. It will usually take around 5-7 business days to receive your LEI. However, if many companies are applying, it may take longer.
Please contact your local branch as soon as you have received your LEI code. They will help you to register your code.
If a sole trader wants to trade in derivatives, an LEI is required. Otherwise an NID is sufficient.
At the end of October, the Swedish Financial Supervisory Authority (FI) decided that it is the owner’s (i.e. the insurance company’s) LEI which must be reported for securities transactions within an endowment insurance custody account. As a result of this decision, the company does not require its own LEI to be able to trade securities within an endowment insurance custody account (Kapitalspar Depå).